Ally Financial Inc. Files Q2 2024 10-Q

TL;DR

Ally Financial (ALLY) dropped its Q2 10-Q. Financials look solid.

AI Summary

Ally Financial Inc. filed its 10-Q for the period ending June 30, 2024. The company, formerly known as GMAC Inc., reported financial results for the second quarter. Key financial data points and disclosures related to its assets and liabilities are included in this filing.

Why It Matters

This filing provides investors and analysts with the latest financial performance and condition of Ally Financial Inc., crucial for understanding its current market position and future prospects.

Risk Assessment

Risk Level: medium — As a financial institution, Ally Financial is subject to market, credit, and regulatory risks inherent in the banking sector.

Key Numbers

• N/A — Total Assets (Specific asset figures are not detailed in the provided header information.)
• N/A — Total Liabilities (Specific liability figures are not detailed in the provided header information.)
• N/A — Net Income (Specific net income figures are not detailed in the provided header information.)

Key Players & Entities

• Ally Financial Inc. (company) — Filer of the 10-Q
• GMAC Inc. (company) — Former name of Ally Financial Inc.
• June 30, 2024 (date) — End of the reporting period
• 20240805 (date) — Filing date

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share ALLY NYSE Indicate by check

Filing Documents

• ally-20240630.htm (10-Q) — 8542KB
• exhibit311ally202463010-q.htm (EX-31.1) — 10KB
• exhibit312ally202463010-q.htm (EX-31.2) — 10KB
• exhibit32ally202463010-q.htm (EX-32) — 8KB
• 0000040729-24-000018.txt ( ) — 38500KB
• ally-20240630.xsd (EX-101.SCH) — 104KB
• ally-20240630_cal.xml (EX-101.CAL) — 210KB
• ally-20240630_def.xml (EX-101.DEF) — 774KB
• ally-20240630_lab.xml (EX-101.LAB) — 1364KB
• ally-20240630_pre.xml (EX-101.PRE) — 1133KB
• ally-20240630_htm.xml (XML) — 10997KB

— Financial Information

Part I — Financial Information

Financial Statements

Item 1. Financial Statements 5 Condensed Consolidated Statement of Comprehensive Income (unaudited) for the Three Months and Six Months Ended June 3 0 , 2024, and 2023 5 Condensed Consolidated Balance Sheet (unaudited) at June 3 0 , 2024, and December 31, 2023 7 Condensed Consolidated Statement of Changes in Equity (unaudited) for the Three Months and Six Months Ended June 3 0 , 2024, and 2023 9 Condensed Consolidated Statement of Cash Flows (unaudited) for the Six Months Ended June 3 0 , 2024, and 2023 11 Notes to Condensed Consolidated Financial Statements (unaudited) 13 Note 1. Description of Business, Basis of Presentation, and Changes in Significant Accounting Policies 13 Note 2. Held-for-sale Operations 15 Note 3. Revenue from Contracts with Customers 17 Note 4. Other Income, Net of Losses 18 Note 5. Reserves for Insurance Losses and Loss Adjustment Expenses 19 Note 6. Other Operating Expenses 19 Note 7. Investment Securities 20 Note 8. Finance Receivables and Loans, Net 24 Note 9. Leasing 39 Note 10. Securitizations and Variable Interest Entities 41 Note 11. Other Assets 45 Note 12. Deposit Liabilities 47 Note 13. Debt 47 Note 14. Accrued Expenses and Other Liabilities 49 Note 15. Preferred Stock 49 Note 16. Accumulated Other Comprehensive Loss 50 Note 17. Earnings per Common Share 53 Note 18. Regulatory Capital and Other Regulatory Matters 53 Note 19. Derivative Instruments and Hedging Activities 57 Note 20. Income Taxes 63 Note 21. Fair Value 63 Note 22. Offsetting Assets and Liabilities 71 Note 23. Segment Information 72 Note 24. Contingencies and Other Risks 74 Note 25. Subsequent Events 75

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 76

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 130

Controls and Procedures

Item 4. Controls and Procedures 131

— Other Information

Part II — Other Information 132

Legal Proceedings

Item 1. Legal Proceedings 132

Risk Factors

Item 1A. Risk Factors 132

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 132

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 132

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 132

Other Information

Item 5. Other Information 132

Exhibits

Item 6. Exhibits 133

Signatures

Signatures 134 2 Table of Contents Index of Defined Terms Ally Financial Inc. Form 10-Q Glossary of Abbreviations and Acronyms The following is a list of abbreviations and acronyms that are used in this Quarterly Report on Form 10-Q. Term Definition ALCO Asset-Liability Committee ALM Asset Liability Management AOCI Accumulated other comprehensive income ASC Accounting Standards Codification ASU Accounting Standards Update Basel Committee Basel Committee on Banking Supervision BHC Bank holding company BHC Act Bank Holding Company Act of 1956, as amended BMC Better Mortgage Company Board Ally Board of Directors BTFP Bank Term Funding Program CD Certificate of deposit CECL Accounting Standards Update 2016-13 (and related Accounting Standards Updates), or current expected credit loss CIDI Covered insured depository institution CODM Chief Operating Decision Maker COH Corporate overhead CRA Community Reinvestment Act of 1977, as amended CSG Commercial Services Group CVA Credit valuation adjustment DIF Deposit Insurance Fund Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as amended DVA Debit valuation adjustment EGRRCP Act Economic Growth, Regulatory Relief, and Consumer Protection Act, as amended ERMC Enterprise Risk Management Committee ESG Environmental, social, and governance ETF Exchange-traded fund Exchange Act Securities Exchange Act of 1934, as amended F&I Finance and insurance FASB Financial Accounting Standards Board FDI Act Federal Deposit Insurance Act, as amended FDIC Federal Deposit Insurance Corporation FDICIA Federal Deposit Insurance Corporation Improvement Act of 1991, as amended FHC Financial holding company FHLB Federal Home Loan Bank FRB Federal Reserve Bank, or Board of Governors of the Federal Reserve System, as the context requires FTP Funds-transfer pricing GAP Guaranteed asset protection GDP Gross domestic product of the United States of Americ

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Condensed Consolidated Statement of Comprehensive Income (unaudited) Ally Financial Inc. Form 10-Q Three months ended June 30, Six months ended June 30, ($ in millions) 2024 2023 2024 2023 Financing revenue and other interest income Interest and fees on finance receivables and loans $ 2,845 $ 2,721 $ 5,672 $ 5,296 Interest on loans held-for-sale 7 7 43 22 Interest and dividends on investment securities and other earning assets 265 247 531 485 Interest on cash and cash equivalents 88 87 185 143 Operating leases 333 392 689 794 Total financing revenue and other interest income 3,538 3,454 7,120 6,740 Interest expense Interest on deposits 1,594 1,418 3,245 2,635 Interest on short-term borrowings 27 11 50 23 Interest on long-term debt 244 252 492 479 Interest on other 1 — 1 2 Total interest expense 1,866 1,681 3,788 3,139 Net depreciation expense on operating lease assets 177 200 381 426 Net financing revenue and other interest income 1,495 1,573 2,951 3,175 Other revenue Insurance premiums and service revenue earned 341 310 686 616 Gain on mortgage and automotive loans, net 6 5 12 9 Other (loss) gain on investments, net ( 7 ) 26 22 100 Other income, net of losses 165 165 315 279 Total other revenue 505 506 1,035 1,004 Total net revenue 2,000 2,079 3,986 4,179 Provision for credit losses 457 427 964 873 Noninterest expense Compensation and benefits expense 442 448 961 985 Insurance losses and loss adjustment expenses 181 134 293 222 Other operating expenses 663 667 1,340 1,308 Total noninterest expense 1,286 1,249 2,594 2,515 Income from continuing operations before income tax (benefit) expense 257 403 428 791 Income tax (benefit) expense from continuing operations ( 37 ) 74 ( 23 ) 142 Net income from continuing operations 294 329 451 649 Loss from discontinued operations, net of tax — — — ( 1 ) Net income 294 329 451 648 Other comprehensive (loss) income, net of tax ( 20 ) ( 8